Optimal Housing, Consumption, and Investment Decisions over the Life Cycle
نویسندگان
چکیده
منابع مشابه
Optimal Housing, Consumption, and Investment Decisions over the Life Cycle
We provide explicit solutions to life-cycle utility maximization problems simultaneously involving dynamic decisions on investments in stocks and bonds, consumption of perishable goods, and the rental and the ownership of residential real estate. House prices, stock prices, interest rates, and the labor income of the decision-maker follow correlated stochastic processes. The preferences of the ...
متن کاملOptimal Housing, Consumption, and Investment Decisions over the Life-Cyclea
We provide explicit solutions to life-cycle utility maximization problems involving dynamic decisions on investments in stocks and bonds, consumption of perishable goods, and the rental and the ownership of residential real estate. House prices, stock prices, interest rates, and the labor income of the decision-maker follow correlated stochastic processes. The explicit consumption and investmen...
متن کاملConsumption Over the Life Cycle: How Different Is Housing?
Micro data over the life cycle shows different patterns of consumption for housing and non-housing goods: the consumption profile of non-housing goods is hump-shaped while the consumption profile for housing first increases monotonically and then flattens out. These patterns hold true at each consumption quartile. This paper develops a quantitative, dynamic general equilibrium model of life-cyc...
متن کاملAnnuities versus Bonds Optimal Consumption and Investment Decisions in a Continuous Life Cycle Model
If people behave rationally, why do they invest so little money in annuities? What are the reasons that people consume most when they are approximately 50 years old? In existing models the optimal behaviour is complete annuitisation and the optimal consumption exhibits a peak very late in life. The continuous life-cycle models proposed in the present thesis differ from the existing ones in that...
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Many investors do not know with certainty when their portfolio will be liquidated. Should their portfolio selection be in‡uenced by the uncertainty of exit time? In order to answer that question, we consider a suitable extension of the familiar optimal investment problem of Merton (1971), where we allow the conditional distribution function of an agent’s time-horizon to be stochastic and correl...
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ژورنال
عنوان ژورنال: Management Science
سال: 2011
ISSN: 0025-1909,1526-5501
DOI: 10.1287/mnsc.1110.1336